Thanks for your reply. I hear what you're saying about hourly, and completely agree with your points -- if it is hourly without structure. The difference is I

Thanks for your reply. I hear what you're saying about hourly, and completely agree with your points -- if it is hourly without structure. The difference is I treat each milestone/iteration as a small project, requiring assesment, scoping and client buy-off (A change order to the contract, along with an estimate). If they want time limits before continuing past x number hours, I'm fine with that too. I see the advantages are: * Lower risk to me because the price is not fixed * Lower customer risk because they see progress and can adjust as the project unfolds. * Lower cost to them -- they don't pay extra to cover my risk. * The client has more control since they can make course corrections along the way. * Regular client touch-points are built in - they get more visibility, I can adjust expectations * Scope changes just mean more billable hours The feedback I've gotten is they like the flexibility, and are often more willing to say yes because of reduced risk.